Since 16 June 2025, the Eurosystem has been operating a new collateral management system (Eurosystem Collateral Management System – ECMS). It is a single technical platform through which the national central banks manage assets used as collateral in Eurosystem monetary policy operations in a harmonised manner. The introduction of the ECMS represents a significant step towards unifying processes, greater efficiency and better transparency in the area of ​​collateral management in the euro area.

Following the launch of the ECMS, Centrálny depozitár cenných papierov SR, a. s. (CDCP) and the National Bank of Slovakia (NBS) have switched to using the DCP (Directly Connected Party) model in the TARGET2-Securities (T2S) environment. This model allows the technical participant of the ECMS to directly connect to the settlement infrastructure. Instructions related to the mobilisation and demobilisation of collateral, which are sent to the T2S system and the CDCP settlement system via the ECMS, are processed and settled smoothly and without complications.

Source: pexels.com

In close cooperation with the NBS, market participants and relevant issuers, CDCP also ensures the processing of proceeds and repayment of the nominal value from securities accepted as collateral in Eurosystem credit operations. Since the launch of ECMS, CDCP has processed these corporate events through its cash account in a total volume of 433 million EUR. This is a significant volume, which confirms the functionality and reliability of the processes set up in the new system.

Preparations for operation in the ECMS environment also included technological adjustments to information systems. On 22 November 2025, CDCP incorporated changes to the ISO 20022 standards into the production environment, which relate to the processing of corporate events in accordance with the ECMS requirements. These adjustments were repeatedly and successfully tested in cooperation with the National Bank of Slovakia in the CDCP and ECMS test environments, confirming their readiness for live operation.

The involvement of CDCP in the European Collateral Management System thus represents another important step in the modernization of market infrastructure in Slovakia and in deepening integration into the single capital and monetary area of ​​the European Union.

Author: Peter Nagy